U.S. Regulation

Senate to Release CFTC Crypto Draft in September

The U.S. Senate Agriculture Committee is planning to release a draft bill in early September that would guide how the Commodity Futures Trading Commission (CFTC) regulates the crypto industry.  Senators will return from recess around that time, so this will align with the White House’s September deadline for action on digital asset rules after the signing of the GENIUS Act.
This update comes just one day after the Senate Banking Committee shared its own draft bill. That bill focused more on the Securities and Exchange Commission (SEC), which usually handles securities like stocks and bonds. Both drafts are expected to come together into a final market structure bill later on.
The Agriculture Committee, which oversees the CFTC, wants to outline the Commission’s powers in the crypto space, including what it can and can’t regulate. The upcoming draft will propose that the CFTC take charge of digital assets like Bitcoin and Ethereum, which are often seen as commodities.
According to a post by journalist Eleanor Terrett on X, the Agriculture Committee will share its draft in early September. She said it will be a “discussion draft”, meaning it’s not final and could change after feedback. She also shared that it will be bipartisan, which means members from both major political parties are working on it. One of the names mentioned was Democratic Senator Amy Klobuchar.
The draft will likely give the CFTC control over cryptocurrencies that are seen as digital commodities. That includes popular coins like Bitcoin and Ethereum. On the other hand, digital assets that are more like stocks will stay under the SEC’s control. The draft is also expected to include new ideas on how to regulate stablecoins and decentralized finance (DeFi).
These are two fast-growing parts of the crypto world, and many people have said they need better rules to protect users. Under a current proposal, the CFTC would have 270 days to make decisions on applications related to crypto activities. The Senate Banking Committee has already asked the public for feedback on whether the current draft splits authority fairly between the two regulators.
Terron Gold

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